Seeing Past Frightening Headlines

If you read or hear dire predictions about how underfunded Medicare and Social Security are, you would think retirees will soon be in desperate financial shape. The truth is these programs have served retirees for years, and will likely continue to do so in the future. But the reality is that these programs cannot fully fund your retirement so it’s up to you to help ensure your own retirement security by taking common sense steps today to prepare for tomorrow.

For Your Future

While Social Security and Medicare are the safety nets of retirement, your actions will determine how financially secure your retirement will be. Before then, contribute regularly toward your retirement. Contribute at least the amount your employer matches in your 401(k) plan.

When you receive raises, promotions and bonuses, put the newfound money into your retirement accounts — you won’t miss the extra money because you never had it. If you want to save more, investigate traditional and Roth IRAs. And if it’s available through your workplace, consider contributing to a triple tax-free Health Savings Account (HSA). By using untaxed dollars in an HSA to pay for qualified medical expenses such as deductibles, copayments, coinsurance and other bills insurance does not cover, you can lower your overall health care costs, even into retirement.

As you near retirement, compare Medicare insurance policies — they can differ in price. Make sure to avoid penalties and surcharges by purchasing Medicare policies within the allowable timeframe. Talk to your financial professional to learn more.